CT Smith revises up inflation forecast

CT SMITH Stockbrokers has revised upwards forecast for inflation both for December as well as next year.

“We have revised our forecast for point to point inflation upward to 6.9% for December 2010E (vs. 5.8% previously), resulting in annual average inflation rising to 5.9%. Meanwhile, in expectation of higher inflation in early 2011 (partly on account of the increase in electricity cost), though followed by only moderate prices increases on account of increased productivity in the key food segment, we have revised our forecast for point to point inflation in December 2011E to 8.3% (from 8.2%), while annual average inflation is expected to rise to 8.5% (from 7.4%),” CT Smith Stockbrokers said in an update on inflation following the release of November data.